Question
Fred and Janet and their two daughters, Kelly and Karen, are insured under an individual major medical policy that covers the entire family. The policy
Fred and Janet and their two daughters, Kelly and Karen, are insured under an individual major medical policy that covers the entire family. The policy has a calendar-year deductible of $500 that applies to each covered person, an 80-20 percent coinsuranceprovision, and a common accident provision. a. Janet had gallbladder surgery and incurred covered medical expenses of $15,500. How much will Janet receive from her insurer? b. Fred, Kelly, and Karen were injured in the same bobsledding accident. Covered medical expenses are $2500 for George, $900 for Kelly, and $600 for Karen. How much of the loss will be paid by the insurer? Show your calculations.
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